The formulation of a market needs a buyer and a seller and, at times, due to high transaction costs (e.g. finding a buyer or seller, price discovery), market participants want a specialized broker to link buyers and sellers efficiently. Certainly, people want to buy or sell products or services with a scarcity value in a market. The price of any product or service is determined by the point where demand and supply intersect in a market and by the degree of scarcity of the products and services. Transition of time and place changes the value of a product or service as well. People no longer use seashells as units of currency, while emissions have become the latest hot commodity (e.g. greenhouse gases), something which had no value in ancient times. Already, emissions have been traded since 1990 at national level (e.g. United States Acid Rain Program). With the entry into force of the Kyoto Protocol on 16 February 2005, a new global market has been created for the purpose of emissions trading. For this new market to function well, a diverse infrastructure of tax, project finance, financial goods, commercial transactions, and trade systems at both national and international level is required.

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Executive summary
This European Environment Agency (EEA) report, Application of the European Union Emissions Trading Directive in 2015, provides an updated overview of the information reported by European Union Member States on the implementation of the EU Emissions Trading System Directive (EU ETS Directive, EU, 2003). The report is based on the questionnaires reported by Member States in 2016 under Article 21 of the EU ETS Directive.
The report finds that the implementation of the EU ETS Directive is improving,...

About this reportThis 2016 report of the European Environment Agency (EEA) provides an analysis of past, present and future emissions trends under the EU Emissions Trading System (ETS), based on the latest data and information available from the European Commission (i.e. May 2016 data on verified emissions and compliance by operators under the EU ETS for the years up until 2015) and Member States (projections of EU ETS emissions until 2030, reported under the EU Monitoring Mechanism Regulation (MMR) (EU, 2013c))....

1. Why has the Commission proposed today a revision of EU ETS?
The European Commission has presented a legislative proposal to revise the EU Emissions Trading System (ETS) in line with the 2030 climate and energy policy framework agreed by the EU leaders in October 2014. The proposal is an integral part of the work on achieving a resilient Energy Union with a forward-looking climate policy – a top political priority of the Juncker Commission, launched in February 2015.
This is the first step in delivering...

Synthesising Member State reporting on the ETS
The European Union (EU) emissions trading system (ETS) is one of the key climate policy instruments implemented in the EU to achieve its emission reductions objectives in a cost‑effective manner. The EU Emissions Trading Directive (EU, 2003, referred to hereafter as the `EU ETS Directive`), and in particular Article 21 of the Directive, requires EU Member States to report every year to the Commission on the application of the directive. The Commission Implementi...

On December 19, 2014, the European Union (EU) Commission called for comments on EU Emission Trading System Directive revisions. The revisions include changes to how carbon allowances will be made available to participants in the EU`s emissions trading system after 2020 to reduce GHG emissions by at least 40 percent in 2030 compared to 1990. The 2030 framework for climate and energy also proposes the use of 400 million carbon allowances to create a fund for renewable energy and carbon sequestration projects, and...

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